Financial Crises and Climate Change

Joao Jalles

No 2020/0131, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: We empirically assess by means of the local projection method, the impact of financial crises on climate change vulnerability and resilience. Using a new dataset covering 178 countries over the period 1995–2017, we observe that resilience to climate change shocks has been increasing and that advanced economies are the least vulnerable. Our econometric results suggest that financial crises (particularly systematic banking ones) tend to lead to a short-run deterioration in a country´s resilience to climate change. This effect is more pronounced in developing economies. In downturns, if an economy is hit by a financial crisis, climate change vulnerability increases. Results are robust to several sensitivity checks.

Keywords: climate change; vulnerability; resilience, local projection method, impulse response functions, recessions, financial crises (search for similar items in EconPapers)
JEL-codes: C23 C83 E30 G10 O30 Q40 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-env and nep-mac
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Journal Article: Financial Crises and Climate Change (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp01312020

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